Does the Stretch Zone franchise agreement include a waiver of jury trial for claims between the parties?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES WAIVE ALL RIGHT TO ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT UPON A DISPUTE BETWEEN THEM, EACH IS LIMITED TO THE RECOVERY OF ACTUAL DAMAGES HE, SHE OR IT SUSTAINS.
Section 17.9 WAIVER OF JURY TRIAL
THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY OF ALL CLAIMS MADE BETWEEN THEM WHETHER EXISTING NOW OR IN THE FUTURE, INCLUDING ALL CLAIMS, DEFENSES, COUNTERCLAIMS, CROSS CLAIMS, THIRD PARTY CLAIMS AND INTERVENOR'S CLAIMS INVOLVING THE SALE, NEGOTIATION, SIGNING OR PERFORMANCE OF THE TRANSACTIONS INVOLVING THIS AGREEMENT.
ARTICLE 18 - DEFINITIONS
Section 18.1 DEFINITIONS
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the franchise agreement includes a waiver of jury trial. Specifically, Section 17.9 of the agreement states that both parties waive their right to a jury trial for any claims made between them, whether those claims exist now or arise in the future. This waiver applies to all claims, defenses, counterclaims, cross-claims, third-party claims, and intervenor's claims related to the sale, negotiation, signing, or performance of the transactions involving the agreement.
This means that any legal disputes between a Stretch Zone franchisee and the franchisor will be resolved through a bench trial, where a judge makes the final decision, rather than a jury. This can have significant implications for franchisees, as jury trials are often perceived to be more favorable to the average person, while judges may be seen as more sympathetic to businesses.
However, the Minnesota Addendum to the Franchise Agreement states that Minnesota Statutes prohibit Stretch Zone from requiring a waiver of a jury trial for franchisees in Minnesota. Therefore, the jury trial waiver would not apply to Stretch Zone franchisees operating in Minnesota. Prospective franchisees should carefully consider this jury trial waiver and consult with an attorney to understand its implications fully, especially if they are not operating in Minnesota.